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Institute Of Management Studies & Research

A seminar on Multinational Enterprises by Prakash gowda MBA IVth Sem , IMSR

Multinational Enterprise
INTRODUCTION: A multinational corporation / company is an organization doing business more than one country, Transactional company produces , markets ,invest , and operate across the world . MNCs and TNCs have been growing and spreading their operations due to market , financial superiorities and expansion of markets.

Stages of multinational Enterprise

Broadly categorized into 5 types: 1. Domestic Company. 2. International Company. 3. Multinational Company. 4. Global Company. 5. Transactional Company.

1.Domestic company
Domestic company limited to its operations, mission, vision, within national political boundries.this company focus its view on domestic market opportunities ,domestic suppliers, domestic financial company, domestic customers etc. The domestic company never thinks of growing globally , if is grows , beyond its present capacity , the company selects the diversification strategy of entering into new

2.International Company
Some of domestic companies , which grows beyond their production and/ or domestic market capacities, think of internationalizing its operations. Those company who decide to exploit the opportunities out side the domestic country are the two stages. these company select the strategy of local ting a branch in the foreign markets in other words these company extend the same operation in the foreign markets ( stage1)

Normally international process of most of the company start with this stage 2 , most of the company fallow the this strategy due to limited resource and also learn from foreign markets gradually becoming a global market without taking the much risk (stage2)

3.Multi-national Company
Sooner or later , the international companies learn that extension strategy (i.e. extending the domestic products ,price ,promotion , to foreigner markets ) will not work . The best example is Toyota company. This strategy of multinational company is also referred is also as a multinational domestic .

4. Global Company
A global company is one , which has either global marketing strategy or a global strategy .global company produces either in a home country or produces either in single country and focus on marketing these company product globally ( all over the world) and focus marketing on the domestic country also. Eg: Harley and Dr. Reddy company.

5.Transactional Company
Transactional company produces , markets , invest, and operate across the world .its integrated global enterprise that links global resource to global market profit, there is no pare transactional corporation .However most of the transaction companies satisfy many of the characteristic of a global corporation . Eg: Coca-cola, pepsi cola, Hero-Honda, maruthi-suzuki etc..